Super Micro Computer Inc (SMCI)

Return on equity (ROE)

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020
Net income (ttm)	US$ in thousands	1,048,854	1,150,944	1,444,626	1,419,998	1,152,666	1,048,991	732,378	612,577	639,998	587,251	578,377	444,142	285,163	183,503	124,959	110,701	111,865	91,153	88,532	84,564
Total stockholders’ equity	US$ in thousands	6,301,690	6,379,320	6,238,310	5,876,750	5,469,500	5,093,990	3,076,910	2,165,380	1,972,000	1,768,410	1,818,680	1,625,040	1,425,580	1,273,740	1,186,670	1,132,620	1,096,220	1,053,780	1,064,050	1,072,570
ROE		16.64%	18.04%	23.16%	24.16%	21.07%	20.59%	23.80%	28.29%	32.45%	33.21%	31.80%	27.33%	20.00%	14.41%	10.53%	9.77%	10.20%	8.65%	8.32%	7.88%

June 30, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,048,854K ÷ $6,301,690K
= 16.64%

The analysis of Super Micro Computer Inc.'s return on equity (ROE) over the specified periods reveals a trend characterized by gradual improvement followed by significant growth and subsequent fluctuations.

From September 30, 2020, through March 31, 2022, the company's ROE exhibited a steady upward trajectory, increasing from 7.88% to 14.41%. This period indicates a consistent enhancement in the company's ability to generate profits relative to shareholders' equity, potentially reflecting operational improvements and favorable market conditions.

The most notable expansion in ROE occurred between June 30, 2021, and March 31, 2022. During this interval, the ROE nearly doubled, rising from 10.20% to 14.41%. This sharp increase suggests improved profitability and efficiency, possibly driven by successful product strategies, market expansion, or margin improvements.

From March 31, 2022, to December 31, 2022, the ROE continued to escalate significantly, reaching a peak of 31.80% by the end of 2022. The substantial rise during this period, culminating in more than a twofold increase over the previous year, indicates a period of exceptional profitability and leverage utilization.

Throughout 2023, the ROE remained at elevated levels, with the first quarter at 33.21%, followed by a slight decline to 32.45% in June and further reductions in subsequent quarters. By September 30, 2023, the ROE stood at 28.29%. The decline from the peak suggests potential normalization after a period of rapid growth or evolving operational dynamics.

Projections for the final quarters of 2024 and beyond show a downward trend, with the ROE decreasing to 23.80% by December 31, 2024, and further to 20.59% in March 2024. Nevertheless, these levels remain substantially higher than the pre-2022 period, indicating sustained profitability.

In summary, Super Micro Computer Inc. experienced a significant surge in ROE beginning in 2022, reaching record highs that reflect robust profitability and efficiency improvements. Recent data demonstrate a declining trend, although the ROE remains elevated relative to earlier years, suggesting that while the company's profitability dynamics are normalizing, it continues to generate substantial returns on shareholders' equity.